Madison Investments, an investment advisor, released its “Madison Investors Fund” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund (Class Y) appreciated 7.80% compared to a 5.89% return for the S&P 500 index. In the YTD, nine months period, the fund returned 16.96% compared to a 22.08% return for the index. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Madison Investors Fund highlighted stocks like The Charles Schwab Corporation (NYSE:SCHW) in the third quarter 2024 investor letter. The Charles Schwab Corporation (NYSE:SCHW) is a savings and loan holding company that offers wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The one-month return of The Charles Schwab Corporation (NYSE:SCHW) was 9.22%, and its shares gained 40.40% of their value over the last 52 weeks. On October 17, 2024, The Charles Schwab Corporation (NYSE:SCHW) stock closed at $71.91 per share with a market capitalization of $130.752 billion.
Madison Investors Fund stated the following regarding The Charles Schwab Corporation (NYSE:SCHW) in its Q3 2024 investor letter:
“The bottom five individual detractors were Dollar Tree, Alphabet, PACCAR, The Charles Schwab Corporation (NYSE:SCHW, and Copart. At Charles Schwab, a discount securities broker, investors remain focused on the higher cost of funding the business. While the short-term impact of customers ‘sorting’ cash into higher-yielding money market funds and fixed income securities presents a headwind to earnings, we believe Schwab will continue to gobble up market share. Over time, we expect profits will normalize higher as these challenges stabilize and the business grows.”
A corporate finance professional studying a financial performance chart.
The Charles Schwab Corporation (NYSE:SCHW) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 72 hedge fund portfolios held The Charles Schwab Corporation (NYSE:SCHW) at the end of the second quarter which was 71 in the previous quarter. The third quarter revenue of The Charles Schwab Corporation (NYSE:SCHW) increased 5% year-over-year to $4.8 billion. While we acknowledge the potential of The Charles Schwab Corporation (NYSE:SCHW) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed The Charles Schwab Corporation (NYSE:SCHW) and shared Ariel Appreciation Fund’s views on the company. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.